Bankruptcy

IMG_0090Once upon a time, there was a strong social and financial stigma attached to the word “bankrupt” that left the debtor damaged by the process. Times have changed and much of that negative aspect has disappeared. However, one must carefully consider taking this step. There are still merchants, landlords, and lenders who require extra precaution when dealing with those who have demonstrated poor financial skills. Making the decision to pursue bankruptcy as an option is not a decision one should take without profession counseling.

There are other options for solving financial stress other than the bankruptcy option. The financial counseling option allows one to work with creditors to find solutions that are in both parties best interests. Lenders often are willing to consider settling for less rather than nothing. Having said this a competent attorney and certainly we want to explore these options. It our belief we have the responsibility to help you find the Best solution even if it may require our services. We hope our actions will help us earn a reputation that make us be both successful and able to serve our goal of being a resource to the community.

BASIC STUFF

For the purposes of this discussion there are two levels (types) of bankruptcy, referred to as Chapter 7 and Chapter 13, which available to the normal individual wishing to pursue debt relief.  Yes, there are a couple other options applicable to situations whCere the majority of the debt is business related or to farmers all of which if applicable a competent attorney will pursue on your behalf.  Let’s talk about the normal alternatives and how they are used.  Most times I see people who have incurred large uninsured medical bills, large credit card debt, real estate where value is less than current debt, and lastly, due to a recent divorce they can no longer individually handle debt occurred during the marriage.

CHAPTER SEVEN

Chapter 7 is called “Going all the Way”which means the individual is asking the court to discharge him from all obligations.  Basically the individual is telling the court he/she is insolvent and unable to meet any of the financial obligations that one is currently being held responsible.

CHAPTER THIRTEEN

Chapter 13 is often called a Consumer Reorganization Plan.  It is the courts goal that a person should pay their debts, or at least as many of their debts as possible.  It because of this goal that courts favor a Chapter 13 whenever possible.

A FRESH START (By Magali Trujillo)

First put your financial house in order.  Get a copy of your credit score for free from annualcreditreport.com and deal with any outstanding debts or inaccuracies.  Next, create a budget, track your income and expenses, and spend money only on what’s important and essential.  Also create a record of your assets and liabilities, a balance sheet.  And don’t forget to set aside money for an emergency fund equal to at least one month’s income, if not more.

Then you can start rebuilding credit by applying for a credit card.  Research cards at Bankrate.com to see which banks offer cards to people with poor credit records.  Look for a secured card with the best rates and lowest fees and that reports to the credit bureau.  A secured card is an account backed by a deposit made to the issuer, says Gail Cunningham of the National Foundation for Credit Counseling.  After you’ve developed a history of making payments reponsibly , you can apply for an unsecured card.  Check out NFCC.org for more tips.

PAGE FOR HELPFUL LINKS AND INFORMATION

Much of what has been provided here for your information has shamelessly been taken from Gregory Garrison’s book entitled FREE LEGAL ADVICE which can be purchased from local book stores or Amazon.com.  I highly recommend this book as it is written in a style that makes the information easily understood and thus used.  If you go my Link Page you will find a number of links that may be helpful and also forms that will need to be filled out prior to the actual filing of a bankruptcy proceeding.  Again, my consultation is at no charge and although all bankruptcies share many issues each person needs to have one’s own circumstance addressed.